Digital asset business Fineqia AG has entered into a partnership with crypto custodian Copper to offer custody solutions for its exchange-traded note (ETN) business. This collaboration is aimed at enhancing the reliability and transparency of Fineqia’s products.
Under the new agreement, Copper will safeguard the underlying assets held in Fineqia’s ETNs, including the Fineqia FTSE Cardano Enhanced Yield ETN, which provides direct exposure to Cardano (ADA). As of January 29, this product had more than $45 million in assets under management.
The Cardano ETN started trading on the Vienna Stock Exchange approximately 10 months after Fineqia AG received initial approval. Fineqia’s prospectus allows its ETNs to hold other cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Avalanche (AVAX), and Tron (TRX).
Copper, a London-based custodian supported by British multinational bank Barclays, will play a crucial role in ensuring the security of Fineqia’s customer assets, protecting them from theft, loss, or unauthorized access.
The partnership between Fineqia and Copper highlights the increasing significance of custodial services for asset managers who aim to attract institutional capital to the crypto space.
In response to the growing demand for institutional custody, various crypto firms have been expanding their custodial businesses. Taurus and Fireblocks, infrastructure providers, expanded their custodial offerings in North America, joining established players like Kraken and Coinbase, which provide custody services for institutional clients.
In September, US crypto custodian BitGo launched a regulated platform for custody services for Web3 protocols. In December, Crypto.com announced the launch of its US institutional custody service, driven by the election of Donald Trump and the anticipation of improved regulations in the United States. Additionally, Coinbase dropped its lawsuit against the Securities and Exchange Commission and expressed its intention to collaborate with the incoming administration to establish a regulatory framework for the industry.
Meanwhile, Coinbase has been urging regulators to clarify whether financial institutions are permitted to serve crypto businesses. The exchange approached the Federal Deposit Insurance Corporation to seek clarification on whether chartered banks can offer crypto custody and execution services.